Adipo Therapeutics, a late-stage, preclinical biopharmaceutical company developing treatments for obesity and Type 2 diabetes, announced the successful completion of a $1.9 million bridge fund round.
To date, Adipo has raised a total of $4 million in seed funding to advance the development of its lead asset ADPO-002 for the treatment of obesity through increased energy expenditure.
Bridge Financing Use and Investors
The bridge financing is being used to complete critical studies to demonstrate ADPO-002 can convert energy-storing white adipose tissue to energy-burning brown adipose tissue in human fat. In addition to several angel investors, key investors in Adipo include Purdue Research Foundation, Elevate Ventures, IU Ventures and VisionTech Partners.
“We are excited by Adipo’s newest milestones. We have assisted Adipo in its novel approach to treat obesity and Type 2 diabetes through IP support and entrepreneur-in-residence resources,” said Brooke Beier, senior vice president at Purdue Innovates. “The Purdue Research Foundation was an early investor in this technology that originated from Purdue University. We continue to be supportive of the potential for this technology to make a meaningful difference in the lives of people living with obesity and Type 2 diabetes.”
“We have high conviction in the Adipo leadership and technical team, the science and the high unmet market need for novel treatments for obesity and Type 2 diabetes,” said Christopher Day, CEO of Elevate Ventures. “The size of the obesity market, along with the lack of treatments that focus on increasing energy expenditure, are among the drivers for investing in Adipo.”
The Impact of Obesity and Type 2 Diabetes
According to the National Institutes of Health, by 2030 there will be over 140 million people with obesity and over 50 million people with Type 2 diabetes in the U.S. Obesity is a global health crisis that affects over 40% of American adults. People who are overweight or are affected by obesity are at increased risk for many other serious diseases and health conditions including Type 2 diabetes, fatty liver and gallbladder diseases, high blood pressure, dyslipidemia, cardiovascular diseases, sleep apnea, breathing disorders, osteoarthritis, mental illness, and some cancers. Despite multiple available treatments, most treated patients are not reaching their therapeutic goals, resulting in an eight-year reduction in life expectancy and soaring medical costs.
“While weight loss can be achieved through decreasing calorie intake and/or increasing energy expenditure, the newer therapies on the market today are focused primarily on appetite suppression to reduce a person’s daily caloric intake,” said Adipo CEO Karen Wurster. “There is a need for new products that work to increase energy expenditure without limiting calorie intake. Adipo’s technology increases energy expenditure by converting energy-storing white fat into energy-burning, metabolically beneficial brown fat.”
Research has shown a correlation between higher levels of brown fat with lower odds of obesity, Type 2 diabetes and cardiovascular disease. ADPO-002 has the potential to be a complementary product to existing weight loss and diabetes drugs given its ability to increase energy expenditure and improve insulin resistance.
ADPO-002 is a first-in-class, weekly treatment to increase brown fat through localized conversion of white fat. Studies in animals have shown that when treated weekly with ADPO-002, local brown fat increases and leads to durable weight loss, improved blood glucose control and a decrease in lipids with no change in calorie intake.
Growth and Next Steps
As part of Adipo’s growth, the leadership team has grown by two key members. Earlier this year, Dr. Michael Clayman was named board chair of Adipo. He joins Wurster and Meng Deng, Adipo founder and president and associate professor in Purdue University’s College of Engineering, as the board of directors. Clayman is a former executive at Eli Lilly and Co. and co-founder and former CEO of Flexion Therapeutics. Keith Johns has joined the management team as chief strategy officer. Johns was most recently senior vice president of global marketing and alliance management, diabetes and obesity business unit, at Eli Lilly and Co.
The Adipo team is now raising $35 million in Series A funding to move its product to first human dose to demonstrate safety and efficacy in people. The Series A capital will enable the team to continue its efficient execution to advance ADPO-002, including good manufacturing practice, IND enabling studies, IND submission and approval, and the Phase 1 clinical development program.
